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Innovation in the smart phone industry: Will Product Differentiation foster

competitiveness of the LGs G5 Smartphone?

Table of Contents
Chapter 2: Literature Review.................................................................................................2
2.1 Introduction......................................................................................................................3
2.2 Conceptual and Theoretical Framework...........................................................................3
2.2.1 The Concept of Differentiation and Standardization in the Context of Smartphone.3
2.2.2 Technology acceptance and adoption theories and Smartphone choice....................6
2.3.1 What factors determine consumers smart phone choice?.........................................7
2.4 Conclusion........................................................................................................................9
Chapter 3: Research Methods and Methodology.....................................................................11
3.1 Research Questions.........................................................................................................11
3.2 Research Philosophy.......................................................................................................11
3.3 Research Design.............................................................................................................11
3.4 Research Approach.........................................................................................................12
3.5 Research Strategy...........................................................................................................12
3.6 Data Collection...............................................................................................................12
3.7 Data Analysis..................................................................................................................13
3.8 Ethical Considerations....................................................................................................14
References............................................................................................................................14

Chapter 1: Introduction
1.1 Background of the Study
In the 1980s the gradual but irreversible process of the introduction of the 1st
generation of mobile handsets and networks fundamentally changed the way individuals
communicate (Huston and Nabil, 2007). Originally the fixed-line telephony was seen as a
complementary and later a substitute has over the 2nd, the 3rd and now the 4th generation of
mobile communications changed into a part of individuals lives that is irreplaceable.
According to ITU (2010) the mobile phone users in the world is around 4 billion worldwide.
The tremendous changes in the technological advances in the last decade let to the emergence
of a new product, smartphone, which eventually shook the players in the phone industry. The
recent standardization of electronic elements as well as the increases in-built of processing
power has transformed the R&D focus of this industry from hardware to software
components, hence favouring companies specialised in software (Haupt, et. Al, 2007).
Therefore the situation has changed as competitors from the personal computing, electronic
and internet service industries have ventured into the smartphone industry. Most of these new
competitors had been among the industrial leaders in their former industry of operations
using different competencies and strategies, which they are translating into the mobile phone
industry (Kenney and Bryan, 2011). A good example is the LG Company, which was originally
specialised in electronic products but now has ventured into the production of the
smartphones. The transformation of this industry has become intense and aggressive in terms
of the competitors, hence resulting to innovative strategies such as product differentiation in
order to maintain position in the market.
LG Corporation is a multinational conglomerate from South Korea, with its main
headquarters located in Yeouido-dong, Seoul (LG, 2013). The organization mainly specializes
in electronic products and operates in different subsidiaries across the globe. Due to the
transformation of the mobile industry, LG was among the new entrants to the market,
producing smartphones. Due to the entry of different organizations in the mobile industry
specifically in the production of smartphone, the competition has moved to product
differentiation strategy, which comprises mobile operating systems and other features such as
cloud services, application stores among other applications and features of these phones.
Mostly the competition in this industry take two different routes, technology-wise and market
structure, which are further increasing the dynamic and complex nature of the industry

(Kenney and Bryan, 2011). Most players in this market are now concentrating on product
differentiation using technology advancements and in order to maintain their consumers. Due
to the competitive mimicry in the smartphone industry, many of these phones across different
leading brands share some common benefits such as the dazzling displays, longer battery life,
and better cameras among other desirable traits. Nevertheless, these features make these
smartphones too much alike, and product differentiation is required in order to foster
competitiveness in the smartphone industry. Recently, the LG Corporation came up with a
new differentiated product that aims at fostering competition in this industry, the LG G5
phone (Gikas, 2016). The LG G5 smartphone is a clever design and a refreshing mutation that
allows consumers to improve their substantiality as they use the smartphone. The LG G5
smartphone comes with differentiated features bringing a modular swapping fantasy to its
consumers. Among the unique features in this smartphone is the swapping modular feature, a
high-resolution and better camera as well as a USB type C port, which ensures ultrafast data
connections among other notable features that enable the phone to be admired by the
consumers in the market (Gikas, 2016). The below diagram shows a picture of the LG G5
smartphone, demonstrating its unique feature of swapping modules. The LG Corporation
recent innovation, the LG G5 smartphone, is a good strategy of product differentiation of the
company side that aims at fostering competition in the smartphone industry.

Retrieved from http://www.consumerreports.org/smartphones/lg-g5-hands-on/


1.2 Research Problem Statement
The optimal use of innovation should lead to better competitive advantage, faster
speed to the market as well as more efficient and cheaper R&D. According to Kenney and
Bryan (2011) the production of smartphone industry requires innovative strategies of product

differentiation in order for different players to compete effectively in the smartphone industry. This
research focuses on the LG Corporation recent product the LG G5 smartphone, which reflects the
organization efforts of using product differentiation in order to compete effectively in the smartphone
industry. Lichtenthaler (2011) in his research on open innovation in the mobile phone industry
indicates that the future of this industry depends on how organizations develop their products in
different ways, which translates to product differentiation. This research will focus on how product
differentiation fosters the competitiveness of the LG G5 Smartphone.

1.3 Research Aims and Objectives


`The main aim of this research is to determine how product differentiation of the LG G5
smartphone is fostering competition in the smartphone industry. Other objectives include:

To explore whether there is a standardised smart phone design envisaged by

consumers
To explore the extent to which the unique design accounts for consumer preference

for LGs G5 Smartphone


To explore design adjustments that needs to be done to foster greater product
acceptance

1.4 Research Questions


This research will be based around answering these questions:

1. Will Product Differentiation foster competitiveness of the LGs G5 Smartphone?


2. Is there a standardised smart phone design envisaged by consumers?
3. What is the extent to which the unique design accounts for consumer preference for
LGs G5 Smartphone?
4. What design adjustments that need to be done to foster greater product acceptance?
1.5Methodology
This research is practical oriented rather than theoretical oriented. Only a few theories have
been included since there are not many theories on the use and adoption of new technology.

However, the research has extensively applied both conceptual as well as theoretical
perspective in establishing the objectives of the research. The research primarily uses both
primary and secondary sources since the research requires both first-hand and basic
knowledge. In terms of primary sources, the research uses survey and interviews. The use of
survey in this research gives satisfying results since there are many users of smartphones,
hence making data collection on the surveys easier. The interviews were used to interview the
LG Company employees, few users of the LG G5 smartphones as well as distributors of

smartphones in order to establish how the new differentiated product by LG, the LG G5
smartphone is fairing in terms of competition with other brands of smartphones. The primary
data was collected using questionnaires as well as recording devices for the interviews and
analysed using various computer software. The secondary sources used in this research
include journals, articles and blogs from the smartphone industry, books, newspaper articles
and other internet sources. These sources offer substantial and useful information relating to
the product statement of the research.
1.6 Research Scope and Delimitation
This research will primarily focus on the innovation of smartphone industry dwelling
on product differentiation and how it foster competitiveness, with the LG G5 smartphone as
the main focus. It will include standardisation and differentiation strategies and elements of
the smartphones. Additionally, the research will also focus consumer reaction in terms of the
LG G5 smartphone and some of the features that make the phone favourable. Furthermore,
the research will also explore different adjustments that should be done on smartphones
design in order to improve their acceptance by the consumers. However, the research will not
focus on other factors such as the brand name that foster competitiveness in the smartphone
industry.
1.7 Significance of the Study
This study will be highly helpful as well as useful to the LG organization as well as other
smartphones organizations in knowing what should be done in order to remain competitive in
the smartphone industry. The outcome of the research will also enable the organization
understand how different innovation strategies such as product standardization and
differentiation assist in fostering competition in a very competitive industry such as the
smartphone industry. Finally, the research findings will expand the researchers knowledge in
regard to all matters pertaining to innovation in the smartphones industry and how product
differentiation can be applied as a strategy to foster competition.
1.8 Outline of Chaoters
This research is developed in six different chapters, and each chapter explains a
different topic in regards to the research questions. The first chapter is Introduction, which
introduces the topic of the research and what to be included and excluded in the entire
research. The second chapter is the Literature Review, which offers secondary sources for the
research based on existing literature related to the topic. The third chapter is the

Methodology, which include the research methods used to gather and collect information
regarding the study. The fourth chapter is the Findings and Analysis, which entails generally
analysis of the findings of the study mostly gathering information from the methodology
chapter and the literature review chapter, hence explaining the outcome of the research.
Chapter 5 , Discussions, explains the findings further, placing them into their academic
context, accounting for them and linking them up with the past studies. The last chapter is
Conclusion, which provides a critical conclusion based on the findings of the research and
also offers recommendation as well as offers insight on future research to be conducted
related to the topic in question.

Chapter 2: Literature Review


2.1 Introduction

Consumers are now shifting towards the use of smart phones, given their support for
numerous applications. To a large extent many of the smart phones have similar features,
software, shapes and even sizes, with minimal brand differentiation (Chun and Maniatis,
2009). Ordinarily, designers will attempt to enhance customer experience and respond o their
sense of aesthetics and satisfaction (Kuniavsky, 2010). This similarity raises questions, as to
whether the designers could be responding to a consumer perception of uniformity in design,
or whether the companies making smart phones are just not being innovative. The LG, as a
case study, have come up with G5, which defies the usual features of Smartphone, in terms of
shape, position of accessories and features. Technology acceptance and adoption theories
suggest that it takes time for consumers to accept a new technological product into the market
(Park and Chen, 2007). Acceptance will only be attained if the design approach used is
considered easy to use and convenient (usable) to the consumers. The phone make is newly
introduced in the market, and it remains a question of how the consumers are likely to be
persuaded by the new design of smart phones, as depicted in LGs technology, so that it gains
acceptance. This paper reviews pertinent theories and literatures relevant to choice of smart
phones, especially on matters relating to design considerations in the choosing smart phones.
The study is based on the concepts of differentiation and standardization of design, and so
these concepts are explored. It further examines technology acceptance model (TAM) which
is the theoretical underpinning for the study. Lastly, it examines the empirical literatures to
examine the existing research gaps. It will be illustrated that there remains a gap in the
existing studies on whether there exists standards of mobile phone design pressed by the
users, and this is a gap that the study seeks to fill.
2.2 Conceptual and Theoretical Framework
Various theories have explored the use and adoption of new technology in various
contexts. The theories try to illustrate the vitality of technology in everyday activities of
human beings.
2.2.1 The Concept of Differentiation and Standardization in the Context of
Smartphone
A Smartphone is a hand-help mini computer capable of performing many functions
and also making calls., and tTo ensure they have persistent functionionality and remain
relevant to the market trends and applicationss, companies may resort to either
standardization or differentiation. Standardization refers to the development and

implementation of products standards. Standardization assists in the mass production for the
purposes of safety, a products quality, its interchangeability and a products compatibility
(Bardeen and Cerpa, 2015). The applied standards of a product are for its size, its weight, its
quality and in addition, its strength. Standards can either be at the international or national
levels. Lasserre (2012) concurs that differentiation enables innovation and thus enhances its
viability and increase in its lifecycle thereby durability. Standardization improves product
management and product design. It also enhances the products quality and mass production.
By standardizing a product, manufacturers help improve its efficiency such that the choices
of the customers are increased in terms of their preferences. The activity also allows for easy
management of the supply chain while easing the costs of installation and maintenance.
According to Lasserre (2012) , through standardization a product may thus get itself readily
kept up to date constantly due to the variety of existing substitutes. Standardization also helps
in the development of common measures and terms used in the products. It helps determine
how a mobile phone can be made in order to limit greenhouse gas emitted. However, it has
been argued that standardization is difficult to adopt in small enterprises due to the small
scale of the business activity hence diseconomies of scale as compared to the better
performance of

since standards which are mostly developed by large enterprises that

experience economies of scale (Smith, 2013).

The acceptance of mobile devices that

significantly deviates from the conventional designs can be predicted using the Technology
Acceptance Model. The following figureimage illustrates the technology acceptance model.

Figure 1: Technology Acceptance Model (Source: Davis, Bagozzi and Warshaw, 1989)
Davis (1989) explains that Technology Acceptance Model has two concepts, the
perceived usefulness and perceived ease of use of the technology is concern. These concepts
help determine the attitude of the customer towards using the technology thereby influencing
behavioural intention to use and enhancing the possibility of its adoption. Porter (1980)

shares that in a given product line, there are strategic groups referred or competitors who
engage in the production of the same product due to the application of similar technology.
These may invariably encompass the use of the same production style, the use of the same
specialists, the sharing of a common platform used in the production process or the targeting
of a common market segment. All global companies have common strategic groups which
require certain rules and regulations regarding being participant in their activities. Levitts
(1980) concept of product levels helps provide guidelines which can be used by companies as
they form or join a particular strategic group. These levels are generic product, expected
product, augmented product and potential product (Andonov, n.d.). In a study, Kotler (1994)
adds one more level, core benefit as the first level, thereby bringing the levels to five. Thus,
competition and differentiation occur during the process of product launch. In addition to the
five levels, there is a sixth level, which is the compliant product where there is the absence of
the competition between the companies though they may have similar approach towards the
market segment targeted. The sixth level is the common link between the producer company
and the physical nature of the product. European Telecommunications Standards Institute
determines the standardization of smartphones to be availed in the European market. The
current Life Cycle Assessment (LCA) Information Communication Technology (ICT) models
used define certain forms of cellphones to be designed. However, they do not determine the
final products eco-design as used in the manufacture of eco-friendly cellphones, for example
(Pitt et al., 2011). Likewise, Park and del Pobil (2013) agree that standards such as the area of
display for the LCD touch screens, electric power consumption and distance it travels by
airways are determined by the manufacturer who also determine other additional features
such as compliance to 3G/4G networks, WiFi, Bluetooth, the various OSS platforms and
other selected features, which sets the cellphone apart from those found in similar market
segments. Standardization in the interoperability of cellphones come in the form of
technology such as SMTP for email and HTML for internet browsing.
Compared to standardization, product differentiation is an expensive activity and also
hinders the entry of new producers in the market segment targeted. Yeh, Wang, and Yieh
(2016) inform that an organization that keeps inventing through innovation may attract
loyalty from its customers. This would lead to massive product launches and marketing
activities like advertising which require high capital investment thereby becoming liability of
the firm. The eventual cost is meant for the customer to bear as they pay for the same product
at a higher cost than it was before. Similarly, product differentiation develops its own market
activities whereby the products which are known to the customers are bought more by the

customers while those that are new in the market are not bought as much. Therefore, the new
product may be sold in the market at a lower cost than the known product leading to losses by
the new entries. Similarly, according to Wahlberg (2012), smartphones require certain skills
in order to operate and this is aided by the user instructions provided by the manufacturer.
The guidelines help the customer to be able to use the smart phone taking any precautions
preferred upon them by the manufacturer. It is highly preferred that the promoters of the
smart phone must emphasize on its workability and the extent to which is usable by the
customer in multitasking and storing information, which can be used in the long term by the
buyer (Smith, 2013). Smart phones promoters must idol the fact that they are user friendly
and helps control gas emissions into the atmosphere thus eco-friendly as well. The promoters
must develop the trendiness of the smart phones in order for the young people to buy more of
it as the fact that it identifies with their fashions make it a most liked brand. Promoting smart
phones as user friendly and for the young and well adapted to cultural life changes are not
beguiled but made more preferable in order that they adapt to the change and purchase the
smart phones in large numbers thus improving its market and the cost price, which should
also be related so that it is increased in the market as more people buy it.
These theoretical framework guides the understanding of the factors influencing the
acceptance of a new design of mobile devices and the possible reasons behind the
introduction of the new design. The Technology Acceptance Model facilitates the
understanding of the technology consumers and thus helps to explore whether they are likely
to accept a new model or not. The concept of standardization and differentiation facilitate the
understanding of the need to introduce a new design of the mobile devices, therefore
appreciating the possible implications. These theories therefore helps to understand the
phenomena under study much better, making it possible to conduct a more effective study.
2.2.2 Technology acceptance and adoption theories and Smartphone choice
The technology acceptance and adoption theories are used in the determination of
factors which affect the adoption of technologies by the people (Silva, 2015). The study of
the acceptance and adoption of technology for informing purposes helps to predict the
attitude of those who buy the Smartphone technology towards accepting or developing
negative attitudes towards them (Joo and Sang, 2013). The more the number of persons
accepting to take an item for use, the greater its success hence the more the revenue earned
from its sale. Aldhaban (2012) concurs that smartphones today are vital as they affect the life
of consumers through influencing how they communicate, how they socialize, how they do

business, leisure time and other gainful activities. Through the adoption of technology like in
the case of the smartphones, for example, users can readily download brand and mobile
application software and these are ways through which product identity can be enhanced
among the customers. Also, location-linked mapping can be done so that adverts can reach
the customers easily thereby improving the identity and recognition of a product among
buyers. The usability of a smartphones in terms of their operating systems also influence the
consumer choice for that platform which could, for example, be either be Android or
Symbian. The technology acceptance model (Davis, 1989) was used to determine the
adoption of a product by assessing its perceived usefulness and perceived ease of its use,
which when manipulated, can make it possible to determine the users behaviour and their
actual use of the product. Davis (1989) explains perceived usefulness as the extent to which
one believes the use of the technology will assist in advancing their work and perceived ease
of use as the extent to which one believes that using the technology will make them be free
from applying effort. It has also been used in several studies (Shroff, Deneen and Ng, 2011;
Alomary and Woollard, 2015; Edmunds, Thorpe and Conole, 2012; Sharma and Chandel,
2013) to explain the importance of studying technology adoption and its impact on long term
product usage by customers. Assessing how these concepts are influenced by the design of
the mobile devices will significantly help to explore the implications of the introduction of a
new design, therefore helping in achieving the objectives of the study.
2.3.1 What factors determine consumers smart phone choice?
Various researchers have explored the factors influencing the acceptance and usage of
the mobile phones and mobile phone products and therefore the features that make such
products competitive. Some studies have focused on the factors influencing the preference
and satisfaction of the consumers with smartphones. Lee (2013) or instance, analyzed the
correlation between the behavior partners of the users based on their preferable sensory
organs and their Smartphone preference. The study surveyed 60 respondents using a 5-point
scale. The study established that while users who preferred iPhones had higher degree of
exterior appearance satisfaction, users who preferred Galaxy Phone had higher degree of
usability satisfaction, service satisfaction, exterior appearance satisfaction, and value
satisfaction. Rani and Sharma (2014) analyzed the consumer preference for Smartphone
brands and determine whether such preferences vary with gender. This study employed
descriptive design in which the respondents were sampled through convince sampling. The
data was collected through questionnaires and analyzed through t-test analysis. Rani and

Sharma (2014) concluded that users select smartphones based on the status associated with
such phones as well as their phones functionalities, and that male users are often more
informed about phone functionalities. Both studies established the role of phone design with
in acceptance and use of mobile phones.
Other studies have focused on the criterion employed by the users when purchasing
smartphones. Uddin, Lopa and Oheduzzaman (2014) explored the factors affecting the
mobile phone buyers in selecting phones to purchase. The study employed continence
sampling and the data was collected through a structured questionnaire with a five-point
Likert scale. The data was analyzed through factor analysis and the study concluded that the
physical attributes of the mobile phone are the most important factors affecting the purchase
choices. However, other factor influencing the purchase choices include operating and
charging facilities, pricing, weight and size, recommendation from colleagues and friends,
and advertising. Soomro and Ghumro (2013) also explore this subject area using the data
collected from students from various schools selected from various universities in Sindh, and
analyzed using descriptive statistics. This study found that the students majorly focused on
feature of the phone such as screen size and camera quality, the prices and the brand of the
phone. Dziwornu (2013) also explored the factors affecting purchase decision of the mobile
phone users through the use of binary logit regression model. The paper collected data from
200 using structured questionnaires and concluded that advance technologies like durability
and internet browsing and the key factors influencing the purchase decision among the
mobile phone users (Dziwornu, 2013). Riyath and Musthafa (2014) also examined the factors
influencing the choice of mobile phone brands among the university students in Sri Lanka.
The study relied on the data collected from the online questionnaires and random sampling of
respondents. Through the use of descriptive statistics, Riyadh (2014) found that perceived
quality, stylish appearances, and price were found to be the most important factors considered
by the respondents in their mobile phone choices. These studies demonstrate that the
consumer choice is affected by various factors, and the phone design is among these factors.
Other studies have also explored the same topic with almost similar conclusions.
Mokhlis and Yaakop (2012) examined the importance of various choice criteria in the mobile
phone selection, with a focus on the Malaysian consumers. The research employed a
quantitative study based on data obtained from 376 universities, and used SPSS data in
analyzing the data. Mokhlis and Yaakop (2012) used factor analysis, descriptive statistics, and
Friedman test. The study concluded that the most important factors affective the consumer

choices of mobile phones include innovative features of the phone, recommendations from
friends and relatives and the prices of the phones. Sata (2013) investigated factors affecting
the decision to purchase mobile phone devices. The study was based on a sample of 246
respondents sampled through simple random sampling techniques. The study used primary
and secondary data and concluded that the phone prices were the most important features
determining the purchase decision followed by the mobile phone features. Both studies
established the role of the phone design in consumer choices, with Sata (2013) referring to
the mobile phone features, and Mokhlis and Yaakop (2012) referring to the innovative
features. As such, the external design of the mobile phone plays a crucial role in the
acceptance of the devices among the target users, where other factors such as being adaptable
in the market are also important.
Other studies have also explored the acceptance of the mobile phones based on the
human-computer interactions perspectives. Huang (2009) explored the challenges in humancomputer interactions associated with designing application for mobile devices. Based on
secondary data, the study noted that designing for portability and mobility presents
significant challenges in mobile phone designs. Huang (2009) suggests various design
improvements to make them more preferable among the consumers, these include specialized
keypads, 3D-orientations, and stylus with touch screens. These suggestions of design
improvement are however meant to improve the ease of use of the devices with software
applications, rather than make fundamental changes on the external appearance of the phones.
Choe, Liao and Sun (2012) sought to identify the most important features to consider in
mobile phone customization. Data was collected through 288 questionnaires and concluded
that the most important reason for customization is to enhance the usability of the mobile
phones. The findings of Choe, Liao and Sun (2012) illustrates the need to ensure ease of use
of the mobile phones by the end user in any process undertaken in the mobile phone
innovations. Akhtar, et. al, (2014) investigate the brand preference, purchasing features,
network providers, calling, account recharge and text patterns of mobile phone users. The
study used questionnaires administered to a randomly sampled sample of 400. The study
found brand and prices to be the most important considerations for users in choosing a
preferred mobile phone. These literatures helps in understanding the position of design in the
acceptance of smartphones by the target users, thus providing grounds fro the study of the
implications of the introduction of a new design to the acceptance of these products.
2.4 Summary and Conclusion

Many smartphones have similar features such as operating software systems,


handset shapes and even sizes (Chun and Maniatis, 2009). Ordinarily, smartphone designers
aim at enhancing user experience and responding to their sense of design aesthetics and
satisfaction (Kuniavsky, 2010). Technology acceptance and adoption theories suggest that it
takes time for consumers to accept a new technological product into the market (Park and
Chen, 2007). Davis (1989) explains Technology Acceptance Model as having two concepts,
the perceived usefulness and perceived ease of use of the technology. These help influence
the adoption of the smartphone among various age groups and class systems. Acceptance will
only be attained if the design approach used is considered easy to use and convenient
(usable) to the consumers. The phone make is newly introduced in the market, and it remains
a question of how the consumers are likely to be persuaded by the new design of smart
phones, as depicted in LGs technology, so that it gains acceptance. This paper reviews
pertinent theories and literatures relevant to choice of smart phones, especially on matters
relating to design considerations in the choosing smart phones.
Standardization assists in the mass production for the purposes of safety, a products
quality, its interchangeability and a products compatibility (Bardeen and Cerpa, 2015). The
applied standards of a product are for its size, its weight, its quality and in addition, its
strength. Standards can either be at the international or national levels. Lasserre (2012)
concurs that differentiation enables innovation and thus enhances its viability and increase in
its lifecycle thereby durability. According to Lasserre (2012), through standardization a
product may thus get itself readily kept up to date constantly due to the variety of existing
substitutes. However, standardization is difficult to adopt in small enterprises due to the small
scale of the business activity hence diseconomies of scale as compared to the better
performance of standards which are mostly developed by large enterprises that experience
economies of scale (Smith, 2013).
As demonstrated in the above studies, the physical design of mobile phone as a
determinant of the decision to purchase and/or use mobile phones has been established in
various studies. However, there remains an eminent gape in the existing studies on whether
significantly unique mobile phone designs would positively or negatively influence the
decision to purchase and use these devices. The current study seeks to bridge the gap in the
existing studies by taking a case study of LGs G5 Smartphone and examining how the
differentiation of the product in terms of design influence its acceptance by the target users.
Further, Pprevious literature has reviewed the importance of standardization and

differentiation on the life cycle assessment of a product like a smart phone whose usability is
linked to communication, marketing and market access. This research therefore expounds on
the gap in various limitations faced by differentiation and standardization in product viability
and how best to promote the acceptance of the smart phones among diverse number of users.
It also aims at giving knowhow regarding the acceptance rationale on the use of smart phone
among trendy users who not only value style and sense of fashion, but also appreciate quality
and variability in their smart phone choices.

Chapter 3: Research Methods and Methodology


In choosing the suitable research method, it is important that a research take into account the
pertinent research questions, researchers philosophical viewpoints (research philosophy) and
well as the logistical implications on chosen research methods in addition to research
constraints. These factors, and the chosen research methods and methods and methodology
are presented below.
3.1 Research Questions

In light of the research objectives, the study seeks to address the following research
questions:
1. Is there any standardised smart phone design features envisaged by consumers?
2. Will Product Differentiation foster competitiveness of the LGs G5
Smartphone?
3.

To what extent do the unique design accounts for consumer preference for LGs

G5 Smartphone?
4.

What designadjustments need to be done to foster greater product acceptance?

3.2 Research Philosophy


This study is influenced by both interpretivism and positivism. Positivism envisages truth as
a constant and objectively discernable phenomenon that can be scientifically and statistically
established (Weber, 2004).

Proceeding from this research philosophy, a survey was

conducted using questionnaire eliciting questions relevant to the research question.

The

feedback were then analysed statistically as explained below. At the same time, the researcher
appreciated the complexities of decision making, inspired by interpretivism. Interpretivists
view reality as a complex phenomenon (Rolfe, 2006). That calls for appreciation of context
and some degree of subjectivity. Thus, the researcher conducted a qualitative content analysis
and interview to get more details on context,attitudes and views
3.3 Research Design
The study adopted a mixed research design, with both qualitative and quantitative elements.
Qualitative dimensions included open ended questions in the questionnaire, interviews issued
by help of interview guide and content analysis of customer and user reviews. This way the
researcher was able to draw in-depth information on the dynamics of customer choice of
smart phones and LG G5 Smartphone in particular (Decrop, 1999). Quantitative dimensions
entailed coding of survey responses and undertaking statistical analysis to make an objective
assessment of the responses in light of the research questions. By applying a mixed method,
the study offered a reinforced design where both in-depth information and objectivity is
assured through qualitative and quantitative designs respectively (Rolfe, 2006). This way,
validity and reliability was enhanced.

3.4 Research Approach


The study essentially adopted an induction research approach where specific responses of the
respondents were analysed to make general conclusion. This approach enabled the researcher
to build hypothesis and theories, given that the research area is still under researched and
indeed of theoretical development.
3.5 Research Strategy
Two research strategies were employed in the study. First was the use of survey, which
allowed diverse views and authentic information, drawn from 101 respondents with
experiences with LG G5 Smartphone? Secondly, the study took a case study of a specific
smart phone product, namely LG G5 smartphone.

The case study product was preferred

because of its highly differentiated design, hence giving a good reference point to test on the
research questions. Through a case study, the researcher would focus more on details, that
the case would be if several smart phones were being explored, or if smart phones were being
explored generally.
3.6 Data Collection
The study used both primary and secondary methods to collect data. Primary method include
administration of 101 semi-structured questionnaire to the consumers, who have either
bought LG G5 smartphone or have an intention of buying one. This helped collect first hand
data , easy to analyse quantitatively. To locate the consumers, invitation for participation was
placed in Facebook pages dealing with sales of phones, and the researchers own facebook
page. A link to the questionnaire was given, having posted the questionnaire in Survey
monkey. Survey monkey offers anonymity , which was a vital ethical consideration in this
study. Recruitment of participant was done through a snow ball sampling , where participants
who have already taken part would invite other consumers they know, who have possibly
used/bought or intend to buy/use LG G5 smartphone. Through this sampling strategy, the
researcher was able to reach out many other participants who would ordinarily not have been
reached, possibly because the study was not brought to their attention. It therefore aided
increase response rate and participation, promoting study validity and reliability.
Another aspect of primary data collection entailed interview of five vendors of smartphones.
Inclusion criteria included a sale of LG G5 Smartphone. Through the interview, the study
gathered in-depth information regarding the product and consumer preferences. The

information also served to triangulate the data collected through the use of questionnaires and
consumer reviews. The vendors were drawn from within the UK, and viewed using their
preferred schedule and mode; two interviewed via Skype, while three others were
interviewed face to face. Qualitative studies typically need relatively low sample size, to
allow the researcher to delve more into the interview responses and draw meanings out of
them.
Secondary research entailed content analysis of customer feedback review from third party
websites, such as Amazon, as well as trade journals, magazines and blogs where features a
review for the smart phone maker has been done, to get further information to triangulate the
primary research. This method took a qualitative research approach, allowing gathering indepth information from consumers expression of their experiences, attitudes and feelings
towards LG G5.
3.7 Data Analysis
The data analysis was dependent on the nature of data. Quantitative data drawn from the
questionnaires were analysed quantitatively using both descriptive and inferential statistics by
the help of SPSS soft ware. This way, an objective analysis was realised, as meanings
depended on the statistical outcome, which could not be manipulated by the researcher. The
qualitative data drawn from both interview and content analysis were analysed through
recursive abstraction and critical content analysis. Recursive abstraction entailed summary
of the data obtained, distilling them and drawing meanings out of them. Critical content
analysis, on the other hand, entailed close analysis of the wording and responses of the
interviewees and product reviewers, in light of the research questions, and making meanings
out of them.

Multiple data analysis approach allowed triangulation, thereby enhancing

research rigour, validity and reliability.


3.8 Ethical Considerations
This study observed pertinent ethical considerations, including: informed consent, privacy,
confidentiality and anonymity of human subjects of the research. Informed consent was
ensured through briefing the participants on what the study entailed, and an assurance that
their responses will not be used for any extraneous purposes. Their right to opt not to
participate and to withdraw at any stage was also underscored. These were done at the point
of invitation, and also indicated in the questionnaire. Anonymity was ensured by posting the

survey in a platform that allows anonymous survey filling (survey monkey), and not
mentioning the names of the interviewees. Same measures also ensured privacy of the
responses. For confidentiality, the researcher ensured not to share the responses with third
parties, save for with permission of the respondents and interviewees. Open dealing with the
data was ensured by letting the participants know that they could get access to the completed
report, upon request. The recorded interviews were also kept safely in disks, which will be
destroyed at the end of the study. Attempts were made not to offend or unduly intrude on the
participants by allowing them to select their preferred methods of interview, and letting those
taking part in the survey to fill the questionnaire in at their convenience.

For secondary

data, the authors were credited through requisite citation principles to avoid any form of
plagiarism.

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